# Table 10: Governance Spline — Z₁ Effect Below vs Above Knot

| Knot (pctl) | Gov value | Z₁ below | SE | p-val | Z₁ above | SE | p-val | R² |
|---|---|---|---|---|---|---|---|---|
| p10 | -1.08 | -0.17 | 1.02 | 0.8694 | 0.14 | 0.35 | 0.6895 | 0.2935 |
| p20 | -0.82 | -0.22 | 0.68 | 0.7502 | 0.23 | 0.40 | 0.5724 | 0.2940 |
| p25 | -0.72 | -0.09 | 0.60 | 0.8831 | 0.20 | 0.43 | 0.6472 | 0.2939 |
| p30 | -0.63 | 0.10 | 0.53 | 0.8453 | 0.08 | 0.46 | 0.8624 | 0.2932 |
| p40 | -0.44 | 0.34 | 0.45 | 0.4477 | -0.22 | 0.52 | 0.6661 | 0.2913 |
| p50 | -0.23 | 0.16 | 0.40 | 0.6810 | -0.06 | 0.62 | 0.9247 | 0.2925 |
| p60 | 0.03 | -0.03 | 0.36 | 0.9303 | 0.51 | 0.79 | 0.5166 | 0.2946 |
| p75 | 0.64 | -0.16 | 0.31 | 0.6167 | 3.20** | 1.50 | 0.0332 | 0.3007 |